Indiana teacher pay is lower than every neighboring state. Here's how much it would take to fix that.

A study released Tuesday sheds new light on the depth and breadth of Indiana’s teacher pay problem – and it puts a price tag on the solution.

$658.1 million.

That’s how much the study from two reform-minded education organizations found it would take to raise the average pay for Indiana teachers to compete with neighboring states. The study attempts to quantify the size of the problem in Indiana and make recommendations for how to fix it.

Aside from raising teacher pay, the study from Stand for Children and Teach Plus stands firmly behind two initiatives to provide more support and opportunity for classroom teachers. 

Groups behind study, Indiana GOP are no strangers 

Both Stand and Teach Plus have worked with Republican leadership at the Indiana Statehouse on legislation to boost salaries and elevate the teaching profession.

It’s unsurprising, then, that the study supports several pieces of legislation put forward this session. House Republicans have proposed bills this year to start creating the career ladders and yearlong residency recommended by the study.

The missing piece: money.

So far, Gov. Eric Holcomb has proposed an increase in general education funding of 2 percent — $143 million in 2020 and, on top of that, an additional $146 million in 2021 — to keep spending about on pace with inflation. The governor has also proposed taking another $150 million from state reserves to pay off a portion of pension debt currently being paid by schools. It’s proposed to save schools about $70 million a year. He has encouraged schools to put that savings toward teacher pay.

Those savings, though, are only about 10 percent of that $658.1 million the study says the state needs to invest to make Indiana a competitive and attractive place to teach.

How Indiana, nearby states compare on average teacher pay

At $50,218, Indiana’s average pay is lower than in Kentucky ($52,338), Ohio ($58,202), Michigan ($62,287) and Illinois ($64,993). To raise Indiana’s average to the regional median, $59,445, it would take that investment of $658.1 million — all of it going directly to teachers. 

Even raising pay to the regional median would still put teachers behind where they were in 2000, when adjusted for inflation. 

"We haven’t returned to rates of pay for teachers, across the country but especially in Indiana, to pre-recession era," said Rachel Hathaway, the Indiana program manager for Teach Plus. 

Teacher raises aren't a lock, but new ideas advance

Among all the different proposals aimed at raising teacher pay working their way through the Statehouse right now, none of them are requirements, and there is no guarantee they’ll result in a raise for any of Indiana's 71,000 teachers.

There are bright spots, though. Where lawmakers haven't committed new dollars to teacher pay, they are moving forward bills to create the career ladders that the study recommends. Right now, teachers have few opportunities to advance their career and stay in the classroom. Those interviewed in the study said they felt pushed toward administration.

Good career ladder models allow teachers to stay in the classroom while mentoring their less experienced peers. The extra responsibility comes with significant increases in pay for advanced teachers, while newer teachers received needed support.

'I have thought about leaving'

Allison Larty, a high school Spanish teacher in Indianapolis and a former Teach Plus fellow, said these are the kinds of opportunities that could help keep good teachers in the classroom. During her 14 years in the profession, Larty said financial pressures have weighed on her. But she wants to stay in the classroom, with her students. 

"I have thought about leaving the profession, she said. "I don't think there's a teacher out there that hasn't at some point.

"But what's so important for me is staying in the classroom."

House Bill 1008 would put $5 million toward the creation of these programs in school districts across the state. It passed the House on Monday and will head to the Senate. 

House Bill 1009 would create one-year residencies for new teachers. It also works on both ends of the spectrum, helping better prepare new teachers while giving advanced teachers another avenue to add responsibility and increase their pay.

Right now, that bill has just $1 million attached to it, but both bills are a good start, said Justin Ohlemiller, executive director of Stand for Children Indiana.

"The biggest challenge moving forward is ensuring that the vision at the state level matches the size of the challenge this report outlines," he said. "Those proposals are definitely headed in the right direction."

Without a remedy, teacher shortage will worsen

The study suggests that all three proposals — residencies, career ladders and better pay — could help keep existing teachers and attract more young people to the profession. Enrollment in the state’s teacher preparation programs dropped by 60 percent between 2009 and 2014.

Without a solution soon, the state's teaching shortage is likely to get worse. Already, 92 percent of districts report that they have trouble filling positions.

A high school science teacher in Mishawaka, near Indiana's northern border, said he would have left the state by now to teach in Michigan, where he can make more money for his family, if it weren't for his mom. John Gensic, a current Teach Plus fellow, said his mom needs his help right now.

"That won't be the case forever," he said. "I feel like there's an urgency to continue the progress of this legislative session. We've taken a lot of good steps, but action will be very important."

Call IndyStar education reporter Arika Herron at (317) 444-6077. Follow her on Twitter: @ArikaHerron.